System Development Charges (SDC's)

Transportation System Development Charges (SDC’s) are designed to help fund identified transportation system deficiencies created by future growth. They are one-time fees paid by new development to help pay a portion of the costs of capital improvements that add capacity to the transportation infrastructure for handling future growth.

These funds are dedicated. Fees collected in the Urban Growth Boundaries (UGB’s) of Salem, Silverton, or Woodburn, will be used in the UGB in which it was collected. Fees collected in the rural areas of Marion County will be used in the rural areas.

ORS 223.297 through 223.314 establishes a uniform framework for governmental agencies to collect SDC’s. The Marion County Board of Commissioners held hearings and adopted resolution to establish the Transportation System Development Charges. Marion County implemented the fee collection process in 1999.

SDC’s are determined through the planning process. Methodologies have been established to review present capacity and forecast future deficiencies. Through transportation planning, estimates of increases in travel within the next 20 years and the improvement needs were determined. This information was used to establish SDC’s within Urban Growth Boundaries (UGB’s) of Salem, Silverton, and Woodburn. A slightly different methodology was used for rural areas.

The charges are assessed and collected at the time of increased usage of the capital improvement or issuance of a development permit, building permit, or connection to a capital improvement.